New Delhi : PHD Chamber of Commerce and Industry has urged the GST Council to rationalise the GST rates in the forthcoming GST Council meeting.
“Current GST rates are not in the sync with the demand creation and employment generation in the country. We urge the government to rationalise the GST rates into three major slabs of 5%, 10% & 15% along with a few sin goods like alcohol, tobacco, fast foods etc in the slab of 28%,” said Pradeep Multani, President, PHDCCI, in a release here.
Items in category of 12% rate should be reduced to 10% and items in the category of 18% rate should be reduced to 15%, Multani said.
The items in 0 and 5% category should be kept as it is, he said adding that there should not be more than 25 items in the category of Sin Goods which is rated @28%.
The rationalization of the tax slabs would create tremendous demand in the economy, subside the inflationary pressures and enhance the sentiments of producers for production and create employment opportunities for the growing workforce in the country, Multani opined.
The lower taxes are always good to enhance the tax base and tax to GDP ratio, the PHDCCI President said.
Going ahead, a level playing field for industry would be crucial for the promotion of ease of doing business in the country, said Multani.
Enhanced ease of doing business, reduced costs of doing business, rationalization of taxes, along with lesser compliance costs would go a long way to enhance the capacity building of the country and to become ‘ Atma Nirbhar’ (self dependent) in the coming times, Multani added.
